Greencoat UK Wind – new capital raise

Greencoat UK Wind is a London-listed investment trust that invests in large operational UK wind farms. It could be a good choice if you’re looking to invest in green energy and infrastructure.

 

Louie French Louie French
10 October 2017

Greencoat UK Wind targets returns to investors of 8 to 9% per year, including 6.49p in RPI (Retail Prices Index) linked dividends. The portfolio currently has 24 projects, with a combined generating capacity of 617MW.

About the capital raise

Greencoat UK Wind (UKW) is issuing 500 million new shares over a 12-month period, which will help the company pursue further attractive investment opportunities and pay down its debt. This is standard practice in the sector and this will be UKW’s first issue in the programme. Approximately half of UKW’s revenues are derived from Government subsidies, while the other half is determined by power price agreements with major utility companies.

Capital raisings such as this one should offer investors a cheaper way to invest in UKW because shares are issued at a discount to their current market price.

How to take part

  • If you are a client and you would like to invest in Greencoat UK Wind via this share issuance, you will need to have cash in your relevant account. You can then email best@bestinvest.co.uk with the amount you want to invest. There is a dealing fee of £7.50 and so the cash will need to cover this (there is no stamp duty). Please specify which account you would like to hold your investment in – whether it’s your ISA, SIPP or investment account
  • If you are not a client but would like to invest in Greencoat UK Wind via this share issuance, you will first need to open an account and deposit the amount you would like to invest in cash. There is a dealing fee of £7.50 and so the cash will need to cover this (there is no stamp duty). Then, please email best@bestinvest.co.uk with the amount you would like to invest, specifying whether you would like to hold your investment in your ISA, SIPP or investment account

The below is the expected timetable for the share issuance.

Updated: 24/10/2017 at 3pm – Deadline for us to receive your applications

25/10/2017 – Placing closes

About the trust

Stephen Lilley and Laurence Fumagalli lead the management team. We like the team’s relatively conservative approach and it remains our highest conviction idea in the sector.

There are 24 projects in the portfolio and these include wind farms across the UK, from Little Cheyne Court in Kent to Screggagh in Northern Ireland and Stroupster in Scotland.

Important information

The value of investments, and the income derived from them, can go down as well as up and you can get back less than you originally invested. This does not constitute personal advice. Investment trusts are similar to funds in that they provide a means of pooling your money but they are publicly listed companies whose shares are traded on the London Stock Exchange. The price of their shares will fluctuate according to investor demand and changes in the value of their underlying assets. Due to their nature, specialist funds can be subject to specific sector risks. Investors should ensure they read all relevant information in order to understand the nature of such investments and the specific risks involved.

Sectors